Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with the Welsh Government on updating the Welsh Fiscal Framework.
Answered by Darren Jones - Chief Secretary to the Treasury
The UK and Welsh Governments have regular discussions on the delivery funding arrangements, including the Fiscal Framework.
We remain committed to working in partnership with the Welsh Government to ensure the Fiscal Framework continues to deliver value for money while upholding our shared commitment to fiscal responsibility.
As set out in the Welsh Government Fiscal Framework agreed in 2016, a full review is triggered if the Welsh Government’s relative funding falls below 115% of equivalent UK Government spending per head in the rest of the UK.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 7 May 2025 to Question 48499 on Revenue and Customs, whether her Department plans to publish the minutes of the 2024 meeting of the Statutory Payment Consultation Group.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Minutes of the Statutory Payments Consultation Group meeting held on 30th January 2024 will be published before the Autumn. A date has not been set for a future meeting of the group.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 7 May 2025 to Question 48499 on Revenue and Customs, when HMRC's Statutory Payment Consultation Group will next be convened.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Minutes of the Statutory Payments Consultation Group meeting held on 30th January 2024 will be published before the Autumn. A date has not been set for a future meeting of the group.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential cost savings to public services resulting from investment in independent social welfare advice services.
Answered by Darren Jones - Chief Secretary to the Treasury
The Government recognises the important role that independent advice services play in supporting individuals.
For example, DWP provide grant funding to Citizens Advice, who deliver Help to Claim support for customers to apply for Universal Credit. Help to Claim reduces the number of Universal Credit benefit queries DWP receive and enables work coaches to focus on work related activities.
In addition, the Money and Pensions Service, which is sponsored by DWP, continues to provide impartial, free money and pensions guidance directly to consumers.
DWP assesses the impacts from its investments, including public services efficiencies, in line with standard Treasury guidance.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether it is her Department's policy that the classification of the East-West rail project as carrying 100% comparability factor for Wales is a publishing error in each Statement of funding policy, published between 2021 and 2024.
Answered by Darren Jones - Chief Secretary to the Treasury
The UK Government is responsible for heavy rail infrastructure across England and Wales so spends money on this in Wales rather than funding the Welsh Government to do so through the Barnett formula. This approach applies to investment in heavy rail by the Department for Transport, including HS2 and East-West Rail, and is consistent with the funding arrangements for all other policy areas reserved in Wales as set out in the Statement of Funding Policy.
We are aware of a potential error, originating in Spending Review 2021, with the Department for Transport comparability factor used to calculate Barnett consequentials for the devolved governments at spending reviews. HM Treasury will work through the impact of this potential error ahead of the next Statement of Funding Policy publication.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much additional funding through the Barnett Formula will the Welsh government receive from regional transport infrastructure funding in England announced on 4 June 2025.
Answered by Darren Jones - Chief Secretary to the Treasury
The Barnett formula is applied when departmental budgets change – not when departments announce how they are spending their budgets.
When changes to the Department for Transport’s budget are confirmed at Spending Review 2025 on 11 June, the Barnett formula will be applied in the usual way.
The published Block Grant Transparency document provides a detailed breakdown of how the block grants are calculated and the next version will be published in due course.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the potential financial savings to the Exchequer of (a) withdrawing the postponed VAT accounting process and (b) bringing forward payment of VAT on imports using the same facilities as apply to customs duties.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Postponed VAT accounting is an established and valued part of the UK’s VAT regime, which provides significant simplification and cashflow benefits to UK businesses who import goods from overseas. Unlike customs duty, VAT paid upon importation of goods is typically able to be reclaimed where the goods are sold on or used in the course of business. Postponed VAT accounting allows businesses to account for and reclaim the VAT on the same VAT return, thereby producing a nil result, rather than paying VAT on import and reclaiming it on a future VAT return. Postponed VAT accounting does not change the overall VAT liability on any imported goods.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential impact of not increasing the personal allowance on levels of disposable income in Wales.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility. At our first Budget, we decided not to extend the freeze on personal tax thresholds which was implemented by the previous Government.
The OBR’s forecast does not decompose policy impacts on Real Household Disposable Income (RHDI) per capita by individual policies or by country. Accounting for the total impact of Budget measures on a UK basis, the OBR forecast RHDI per capita to rise at an annual average rate of 0.5% per year over the parliament.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many times HMRC's Statutory Payment Consultation Group convened in each of the past 5 years.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Statutory Payments Consultation Group convened as follows:
2020 – once
2021 – once
2022 – once
2023 – not held
2024 - once
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with the Secretary of State for Energy Security and Net Zero on release of the investment reserve of the British Coal Staff Superannuation Scheme to uplift pensions.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Chancellor meets regularly with the Secretary of State for Energy Security and Net Zero to discuss a range of issues.
The Government is considering proposals put forward by the BCSSS Trustees and needs to understand their impacts for both scheme members and the Government, in the same way as we are doing for the Mineworkers’ Pension Scheme. The Government and BCSSS Trustees are working together to jointly commission analysis so that we can gain that understanding and work towards reaching agreement on a way forward.